Payday loan solution

Calum555

I'm in a bit of short term trouble with money. I am falling into the payday loan trap and need to get out of it. I need to pay 780 pounds at end of this month to clear them. My rent is due on 1st of January and is 475 pounds. If I don't pay my rent I can wipe these payday loans and the outrageous interest.
I am working over Xmas so will be getting double time payments and also already have overtime banked. This means that on my payday which is 26th jan I could pay my rent which would be 25 days late. I'd also then be able to pay the February rent on 1st feb. hey presto I'd be out of payday loan hell.
But what would the implications be? Would my tenancy be at risk? I've lived here 2 years and never been late paying.

Moneymash

Your best bet is to post this in the 'house buying, renting and selling' section there will be people (who are landlords and renters) there with more expert advice. I would also post a SOA (statement of affairs) in the 'debt free wannabee' section so once you are out of this mess, you can avoid it forever.

Calum555

Thanks for the advice, appreciated.

Brains64

Calum555 wrote: »

I'm in a bit of short term trouble with money. I am falling into the payday loan trap and need to get out of it. I need to pay 780 pounds at end of this month to clear them. My rent is due on 1st of January and is 475 pounds. If I don't pay my rent I can wipe these payday loans and the outrageous interest.
I am working over Xmas so will be getting double time payments and also already have overtime banked. This means that on my payday which is 26th jan I could pay my rent which would be 25 days late. I'd also then be able to pay the February rent on 1st feb. hey presto I'd be out of payday loan hell.
But what would the implications be? Would my tenancy be at risk? I've lived here 2 years and never been late paying.

It's in your favor that this is the first time but it would still be at some risk, I'm in a similar position myself and I know it is a worry but on a positive note to this, thankfully there are laws in place that mean that landlords do have to give some reasonable amount of leeway, not to say that harsh kind of landlords might not try and boot you out but it would not be so easy in law, they would have to prove legally that you haven't made reasonable efforts to try and pay what you owe to them.

I came to an arrangement with my landlord regarding my arrears but I was told that it would be the last time and any breech that it would be going to court, even then they have to prove that you haven't made reasonable efforts to pay before they can kick you out, they look at income etc, you can't possibly pay what you haven't got, it would be ridiculous to expect that, I'd like to think that the court might make a more realistic arrangement if it comes to that, the arrangement with the landlord was cuckoo land and they must have known that!

happycamel_2

I'm a landlord. I'd want you to talk to me about it. I'd be happier with part payment at the time it's due and a catch up later. It would be in my interest for you to get out of the payday loan cycle because ultimately you couldn't afford the rent and interest and you have to leave or I'd have to evict you.

BUT, rent is a priority payment and a predictable cost. I'd want to know where else you could cut back and why you hadnt been living within your means.

harveybobbles

I'd just pay the rent and offer the PDL company a token payment.

Having a roof over your head is more important.

I know with scumbags like Wonga you can log into your account and change the payment date.

DCFC79

Whats your LL like ? Is he easy going ?

How did you end up in this situation ?

UsernameAlreadyExists

happycamel wrote: »

I'm a landlord. I'd want you to talk to me about it. I'd be happier with part payment at the time it's due and a catch up later. It would be in my interest for you to get out of the payday loan cycle because ultimately you couldn't afford the rent and interest and you have to leave or I'd have to evict you.

^^ I like this bit, and entirely agree. :beer: for being human.

happycamel wrote: »

BUT, rent is a priority payment and a predictable cost. I'd want to know where else you could cut back and why you hadnt been living within your means.

Not so keen on this bit as it seems a little agressive and nosey! (but understandable given the circumstance)

so, +1 for approaching the landlord.
Screw the payday loan vicious circle (if possible)

downnotout

How much more in interest are we talking if you pay the pdl late?

Treadmill

Pay your rent, this is your priority. Ring Wonga and make an arrangement to pay, default if you must but pay your rent. I have seen plans like this go wrong too many times, in the past I have even ended up on the cusp of getting evicted myself for coming up with a similar plan. You will have greater piece of mind knowing your rent is paid and keeping a good relationship with your landlord than you will if you don't pay him and prioritise paying Wonga.

Brains64

happycamel wrote: »

I'm a landlord. I'd want you to talk to me about it. I'd be happier with part payment at the time it's due and a catch up later. It would be in my interest for you to get out of the payday loan cycle because ultimately you couldn't afford the rent and interest and you have to leave or I'd have to evict you.

BUT, rent is a priority payment and a predictable cost. I'd want to know where else you could cut back and why you hadnt been living within your means.

The simple answer to that is the cost of living has shot up faster than many have had time to adjust to, it creeps up very suddenly and by the time you realize it's too late, you're skint and everyone and everything is on your back needing you to find funds from SOMEWHERE, the landlord, the council tax, utilities, commuting expenses....to name but a few.

Rent should be a priority I agree but you can't exactly ignore something like a council tax arrears letter either can you??, I was late paying it a few times this year and the letters they sent me were not exactly ones that you can just put to one side and say 'oh well...never mind....I'll pay the rent first and then get back to that later....they'll wait', know what I mean??